Olivia Kirtley, a non-executive director of U.S. Bancorp, Papa John’s International, and ResCare, Inc., and president of the International Federation of Accountants, examines the multidimensional environment of subsidiary governance and highlights leading practices organizations can take to better align the governance of parents and their subsidiaries. She discusses balancing risk oversight processes between the parent and subsidiary organizations, the potential benefits of having common directors to assist with building transparency, and what she believes are two of the most significant risk challenges facing parent and subsidiary boards, among other topics.

The data leak known as the “Panama Papers” is likely to have many compliance officers revisiting their respective organizations’ exposure to relationships with third parties that utilize offshore entities. Given the breadth, depth and complexity of the potential implications surrounding the leak, as well as other similar existing regulatory enforcement trends, it is critical that organizations consider a risk-based, tailored approach to proactively assess compliance risks to which they may be subject.

The Chief Marketing Officer’s list of responsibilities continues to get longer and more complex, with many CMOs perceiving risk management as yet another undertaking added to the mix. Dealing with risk is not something that CMOs traditionally put at the top of their to-do lists. But as the potential benefits of enterprise risk management become better understood, other C-suite executives are increasingly formalizing how they monitor and address risk. This shift is creating an imperative for the CMO to follow suit.

After more than a decade, Hurricane Katrina remains the most costly natural disaster in U.S. history having left southeast Louisiana and the city of New Orleans devastated. In this podcast interview, Mark Riley, Louisiana’s deputy director of disaster recovery, discusses the kind of leadership needed in one of the most disaster-prone states in the country with Mike Kearney, an Advisory partner in Deloitte & Touche LLP, and leader of the Strategic Risk Services practice. Mr. Riley talks about his rules for effective leadership and the importance of trust, teamwork and temperament.

The FASB issued a proposed ASU that would amend the hedge accounting recognition and presentation requirements of ASC 815 to reduce their complexity and simplify their application by preparers. In addition, the proposal seeks to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities. Although the proposed changes are significant, constituents also should consider taking note of those aspects of existing hedge accounting that the Board decided to retain, such as the requirement that an entity designate certain component risks of the hedged item as the hedged risk.

As organizations continue to invest in customer analytics programs, the potential benefits for those that get it “right” are significant. However, they also face multiple risks from the inherent tension between wanting to leverage the data and needing to protect it. Meeting both objectives demands a robust control environment, and organizations that fail or delay in addressing their data governance practices could potentially undermine their big data programs. Not only does a strong control environment yield significant benefits, but increasing expectations of confidentiality and security in contracts, law and regulation—as well as the potential brand damage when data is leaked or misused—are quickly making more robust controls over customer data a business imperative.

The shock and aftershocks brought about by the Brexit referendum present a textbook example of disruption as it occurs when the conditions or assumptions that underlie an organization’s business success change. However, Brexit also is a call to arms for business leaders who are focused on where they see growth and opportunity and how they win in a global marketplace. Learn more about steps executives can take in the face of disruption and the potential upside when unexpected change occurs.

There are many risks that can threaten a company’s reputation, but organizations that ask the right questions—and implement the proper governance, reporting and sensing practices—can address them effectively, says Chuck Saia, chief risk, reputation and regulatory affairs officer, Deloitte LLP. He discusses how organizations can minimize their downside risk and clear a path for continued growth by factoring reputation risk into the business strategy and by investing in the right capabilities.

Results of surveys of CFOs in nine geographies provide insight into their sentiment on U.K.’s Brexit vote on June 23 and its aftermath, revenue expectations, risk appetite, hiring and other issues, as discussed in the most recent Global CFO Signals report from Deloitte Touche Tohmatsu Limited. Judging from the results, the impact of the Brexit vote depends on respondents’ perspective and their exposure. Going forward, Brexit’s impacts may be contained and slow to evolve. Meanwhile, many CFOs are identifying potential risk exposures and considering strategies for doing business in the U.K. and the EU.

Presidential campaigns are complex processes often characterized by uncertainty and unpredictability. However, one certainty looms for federal finance executives as the campaigns march toward election-day: the inevitability of disruptive change. Regardless of which candidate wins the White House, federal CFOs face formidable challenges. During the critical first 100 days of the new administration, it is important that finance executives focus on crafting a strategy, developing relationships with new leadership and finding the money to support existing priorities and those of the President-elect.

About Deloitte Insights

Deloitte’s Insights for C-suite executives and board members provide information and resources to help address the challenges of managing risk for both value creation and protection, as well as increasing compliance requirements.

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As the marketplace becomes more competitive, organizations must be able to rely on the strength of their brand and reputation to attract and retain customers, business partners, employees and investors. Yet for many, brand and reputation risk management remains elusive until an incident or crisis occurs. Keri Calagna, Advisory principal, Deloitte & Touche LLP, discusses leading practices to strengthen resilience in the face of a crisis through a formal and proactive brand and reputation management program and the importance of a risk-focused culture. She also discusses "timing" with respect to crisis response, the role of an oversight committee to help manage brand and reputation, as well as the importance of a risk-focused culture.

As a host of threats continue to mount against organizations, more boards are weighing a broader, more proactive approach to crisis management. Boards are uniquely placed to anticipate and oversee crisis events objectively through the lens of risk management and the strength or weakness of an organization’s crisis preparedness. Boards should hold management accountable for crisis management planning, making sure that not only does the organization have a plan in place but that top executives are trained to respond to a crisis. Consider questions boards can ask to assess their organization’s crisis preparedness.

Eric Pillmore, former SVP of corporate governance for Tyco International, speaks about joining Tyco just after larceny charges were filed against the CEO and CFO in 2002 in this podcast with Mike Kearney, Strategic Risk National Managing Partner at Deloitte & Touche LLP. At the time, Mr. Pillmore was tasked with determining what happened, discovering the root causes that led to fraud and larceny, and helping to transform the company’s culture into one with strong ethics, compliance and governance.